Committee on Social Services reviews KDHE health budget; members probe Gainwell contract, PASRR tool, survey backlog and credentialing

The Committee on Social Services conducted a budget hearing Jan. 30 on the health side of the Kansas Department of Health and Environment, reviewing KDHE’s fiscal 2025 and 2026 requests, proposed reappropriation lapses in House Bill 2007, and multiple supplemental and enhancement items that the legislative budget committee (LBC) and the governor treated differently.

KDHE’s health budget request for fiscal 2025 totals about $4.1 billion, including roughly $970 million from the State General Fund (SGF); KDHE told the committee its revised FY25 request was about $12.9 million below the previously approved FY25 spending level and represents an overall $342 million increase from the prior-year actuals. The agency said a mix of reappropriations, federal grant flows and one‑time items account for much of the year‑to‑year movement.

Why it matters: the items under discussion affect Medicaid administration and payments, public‑health capacity statewide, and federal funding flows. Several items are matched by federal dollars (KDHE noted a 75% federal match on some Gainwell costs and a 90% match for certain PASRR functions), and the agency warned that lapsing some reappropriated funds tied to an enhanced FMAP could trigger federal recoupment.

Major requests and committee discussion

Gainwell contract increase: KDHE asked for a $16.2 million supplemental in FY25 (about $4.8 million SGF) to cover increased contractor staffing, technical licensing and additional testing/production environments needed to operate the Kansas Modular Medicaid System (CHIMS). Amy Penrod, KDHE director of finance, said Gainwell staffing supporting Kansas increased by at least 84 full‑time equivalents compared with the original 2015 contract and that technical licensing costs and added environments drove a roughly $7.9 million licensing increase. KDHE said much of the increase is eligible for a 75% federal match. Christine…